Microprocessor based verification systems have recently been developed using a portable verification device carried by each user to be presented at a point of transaction for verification. These devices are constructed and programmed to respond to keyboard entered identification data, termed a personal identification number (PIN), and transaction data to determine whether an individual is an authorized user of the system to complete a requested transaction and whether the amount of the transaction is within his or her credit limit. Verification is generally performed off-line, wherein substantially all data processing occurs locally, i.e., within the portable device. In other systems that predated the development of portable verification devices, verification is performed on-line by coupling data over the telephone lines to a host computer that may be located at a bank or authorizing institution, for example. There are, however, no systems of which I am aware that use a portable verification device operated alternatively off-line or on-line.
Alternative on-line or off-line operation of portable verification devices provides several advantages. Even if verification is substantially performed off-line, necessary to provide a second level of verification by accessing the contents of account data or other data at the host location. For example, if an off-line verification routine indicates an uncertain or marginal authorization, it may be necessary to obtain additional credit information not available at the point of transaction. Further, it is necessary, for optimum security, to have access to data that is so recently received by the authorizing institution that the data has not yet been provided at the point of transaction. Thus, by accessing the host from time to time, the portable unit can be updated with current information.
Accordingly, one object of the invention is to provide a verification system including a central or host computer, a number of remote terminals and a portable verification device carried by each user, wherein the device is operative either off-line or on-line to provide transaction verification.
Another object is to provide a transaction verification system including a portable verification device carried by each user that is capable of receiving keyboard entered data, storing transaction and identification data, performing computations and displaying results.
Another object of the invention is to provide a transaction verification system including a portable device carried by each user that provides a running record of transactions, interrogates the record to determine whether a requested transaction falls within authorization limits and prints a voucher signifying completion of the requested transaction.
On-line communication to a central computer is generally made via telephone either conversationally by the vendor or digitally through an acoustic coupler. In either case, it is time consuming to establish contact between the vendor and personnel at the host or acoustically to couple digital data to the telephone lines. Furthermore, the user (customer) is made aware that a verification at the central or host computer is being undertaken. It is preferable, however, to establish comunication between a portable verification device and the central computer in a confidential manner, that is, in a manner wherein the customer is not aware that verification is being made and wherein verification is made without delay.
Another object of the invention, therefore, is to provide automatic on-line verification between a portable verification device and central computer.
Another object is to provide on-line verification of transaction data without knowledge by the vendee and without delay to the transaction.
Another object is to provide a verification system that is not limited to any particular environment, e.g., that can be used in electronic funds transfer, secured area access, medical data inventorying and others.